Sun Pharmaceutical Industries Ltd Q1 FY26 Earnings Results – 20% fall in Profits

Sun Pharmaceutical Industries Ltd is engaged in the business of manufacturing, developing and marketing a wide range of branded and generic formulations and Active Pharma Ingredients (APIs). The company and its subsidiaries has various manufacturing facilities spread across the world with trading and other incidental and related activities extending to global market. It is the largest pharmaceutical company in India. Presenting below are its Q1 FY26 earnings.

 

Q1 FY26 Earnings Summary (Apr–Jun 2025)

• Consolidated Revenue: ₹13,851 crore, up 9.5% year-over-year (YoY) from ₹12,653 crore in Q1 FY25.

• EBITDA: ₹4,073 crore, up 11.3% YoY; EBITDA margin expanded to 29.4% from 28.9%.

• Net Profit (PAT): ₹2,293 crore, down 20% YoY, significantly impacted by a one-time exceptional loss of ₹818 crore.

• India Formulation Sales: ₹4,721 crore, up 13.9%.

• US Formulation Sales: $473 million, increased 1.4% YoY.

• Global Innovative Medicines Sales: $311 million, up 16.9%.

• Emerging Markets Formulation Sales: $298 million, up 5.1%.

• Rest of World Formulation Sales: $219 million, up 15.5%.

• R&D Investment: ₹903 crore, about 6.5% of sales.

• Margin: EBITDA margin improved despite higher costs; gross profit trends supported by diverse product and geographic mix.

Key Management Commentary & Strategic Highlights

• Management emphasized strong operational growth with solid revenue and EBITDA increases.

• Profit reduction attributed to a one-time exceptional loss reflecting restructuring or other non-recurring costs.

• Continued focus on strengthening formulations portfolio across geographies and growing innovative medicines pipeline.

• India and emerging markets remain key growth engines, with strategic investments in R&D and product launches.

• US sales showed moderate growth, indicating stable market share.

• Investment in innovation and global expansion continues to be a strategic priority.

• Management confident in medium-to-long-term growth trajectory amid temporary profit pressure.

 

 

Q4 FY25 Earnings Summary (Jan–Mar 2025)

• Consolidated Revenue: ₹12,959 crore, approximately flat YoY.

• Net Profit (PAT): ₹2,154 crore, down slightly from the prior year.

• EBITDA: Around ₹4,000 crore, margin near 29%.

• Operational Highlights: Stable revenue with healthy margins; business normalizing after restructuring initiatives.

• R&D Spend: Consistent with prior quarters, supporting innovation pipeline.